A Survey on Interest in Conditional Facilities of Banks

Prohibition of riba is one of the governing principles in Islamic law. Essence of prohibition is based on forbidding oppression and exploitation. Therefore, positions against getting excess of capital, both in past and now, have been controversial and have been tried at diverse frames including formation of exchange and facility agreement and avoiding this legal prohibition. Exchange and facility agreements are profitable contracts that can be formed in three groups of facility provided to condition of liability, condition of acquisition and condition of secondary joale. The essence of these three conditions is accompanied with regulations that make contract leave the usurious dimension and be give a non- usury dimension to the bank facility and justifies the benefit on the basis of legal and rational argumentation. This argumentation denotes the effect of time in mutation of price and involves condition of liability regarding capital and its execution. This research, in a descriptive and analytical manner, analyses this issue arguing the legal process of bank facilities and emphasizes the need of bank supervision to provide implementation in order to remove doubts from bank interest. It is stated that failure to supervise will cause two types of break of usury for banks: one, consolidation of bank monetary intermediation and the other, mere cash bonds profitable exchange.